RBI introduces Information System(IS) Audit for Urban Cooperative Banks

Urban Cooperative Banks (UCBs) in India have adopted technology and have been offering electronic banking, tele banking, electronic clearing/funds transfer, electronic money, smart cards etc to its customers.

With a view to integrating the range of services offered by UCB branches, providing better customer services, generating MIS reports and various reports for regulators and Government of India, Reserve Bank of India has introduced IS Audit in UCBs.

RBI notification dated June 11, 2014 advises-

1. UCBs may adopt an IS audit policy, if not already done, appropriate to its level of operations, complexity of business and level of computerization and review the same at regular intervals in tune with guidelines issued by RBI from time to time.

2. UCBs may also adopt appropriate systems and practices for conducting IS audit on annual basis covering all the critically important branches (in terms of nature and volume of business).

3. Such audits should be undertaken preferably prior to the statutory audit so that IS audit reports are available to the statutory auditors well in time for examination and for incorporating comments, if any, in the audit reports.

4. IS audit reports should be placed before the board and compliance should be ensured within the time frame as outlined in the audit policy.

5. The above instructions may be implemented during the current accounting year i.e April 1, 2014 to March 31, 2015.